With the rising demand for portable electronics, renewable energy storage, and electric vehicles (EVs), lithium has emerged as one of the most significant metals of the twenty-first century. Because lithium is a key component of lithium-ion (Li-ion) batteries, it has become a crucial component of global economic and scientific advancements as the world moves toward greener energy alternatives.
The Importance of Lithium
Lithium is a highly reactive alkali metal that offers excellent heat and electrical conductivity. Lithium's use in lithium-ion batteries, which power everything from computers and smartphones to electric vehicles and grid storage systems, is the main factor contributing to its increased value. Because of their high energy density, and extended longevity in comparison to other battery technologies, lithium-ion batteries are well-suited for a variety of applications. Lithium plays a crucial part in the worldwide energy revolution. The need for lithium has increased dramatically as electric cars and alternative energy sources like solar and wind power continue to increase.
Lithium Mining
Lithium salts are found in underground deposits of brine, mineral ore, and clay, as well as in seawater and geothermal well brines/water. By definition, lithium extraction is a set of chemical processes where lithium is isolated from a sample and converted to a saleable form of lithium.
1. Lithium Brine Extraction
A large quantity of today’s lithium is extracted from liquid brine reservoirs that are located beneath salt flats, known as salars, most of which are located in southwestern South America and China. Lithium brine recovery is typically a straightforward but lengthy process that can take anywhere from several months to a few years to complete. Drilling is required to access the underground salar brine deposits, and the brine is then pumped to the surface and distributed to evaporation ponds. The brine remains in the evaporation pond for a period of months or years until most of the liquid water content has been removed through solar evaporation. Salar brines are very concentrated and, in addition to lithium, typically contain potassium and sodium as well.
Once the brine in an evaporation pond has reached an ideal lithium concentration, the brine is pumped to a lithium recovery facility for extraction.
Once the brine reaches a sufficient lithium concentration, it undergoes a chemical process and is treated to get lithium carbonate or lithium hydroxide, which can be used in battery production.
2. Hard Rock/Spodumene Lithium Extraction
While accounting for a relatively small share of the world’s lithium production, mineral ore deposits yield nearly 20 tons of lithium annually. Well, over 100 different minerals contain some amount of lithium, however, only five are actively mined for lithium production. These include spodumene, which is the most common by far, as well as lepidolite, petalite, amblygonite, and eucryptite.
Mineral ore deposits are often richer in lithium content than salar brines, however, they are costly to access since they must be mined from hard rock formations.
The process for recovering lithium from ore can vary based on the specific mineral deposit in question. In general, the process entails removing the mineral material from the earth and then heating and pulverizing it. The crushed mineral powder is combined with chemical reactants, such as sulfuric acid, and then the slurry is heated, filtered, and concentrated through an evaporation process to form saleable lithium carbonate, while the resulting wastewater is treated for reuse or disposal.
Advantages of Lithium
One of the primary reasons lithium is so valuable is its high energy density. Lithium-ion batteries, which are commonly used in electric vehicles, consumer electronics, and energy storage, are among the most efficient batteries available currently.
Lithium-ion batteries typically offer a long cycle life, meaning they can be charged and discharged many times before they begin to degrade significantly.
Lithium-ion batteries are increasingly being recycled, and innovations in battery recycling technology continue to improve.
Lithium-ion batteries, especially those used in electric vehicles (EVs), are known for their fast-charging capabilities. Compared to older battery technologies, lithium-ion batteries can charge more quickly without compromising the overall lifespan of the battery.
Unlike lead-acid batteries, which require regular maintenance (like checking fluid levels), lithium-ion batteries require very little maintenance.
Disadvantages of Lithium
One of the most significant drawbacks of lithium is the environmental impact of its extraction. The mining of lithium, particularly from brines and hard rock deposits, can lead to water shortages, habitat destruction, and pollution.
Lithium is not evenly distributed across the globe, and the concentration of lithium reserves in certain regions. Countries with significant lithium reserves hold considerable power in the global market, which can lead to supply chain disruptions or price volatility if trade policies change.
Lithium-ion batteries, while generally safe, are not without their risks. If damaged, overcharged, or improperly disposed of, lithium-ion batteries can catch fire or even explode.
While lithium is abundant in the Earth's crust, the process of extracting it in an economically viable manner is more limited. The demand for lithium has grown significantly, especially with the rise of electric vehicles and renewable energy storage, raising concerns about the sustainability of supply.
The Decline in Lithium Prices
For much of the past decade, lithium prices have been on the rise, driven by the explosive growth in demand for EVs and energy storage solutions. However, in recent years, lithium prices have seen a significant decline, especially in 2023 and 2024.
According to Reuters, the CME contract for lithium hydroxide has collapsed from a 2022 high of $85,000 per metric ton to $11,930. The CME carbonate contract was above $40,000 when it began trading in July 2023 and has since slumped to $12,850.
Source: Reuters
This decline is largely due to a combination of factors:
1. Increased Supply: In response to high prices, more lithium mining operations have been developed.
2. Decreased Demand: Compounding lithium's price weakness has been a downgrade in expectations for EV sales as the Chinese market matures and the Western market loses some of its recent momentum. The EV revolution has hit a slow patch but is far from going into reverse.
3. Battery Recycling: Advances in lithium-ion battery recycling technologies have started to reduce the need for new lithium extraction. As recycling processes become more efficient, more lithium will be available from old batteries, reducing reliance on newly mined resources.
Though the price of lithium has declined, many analysts predict that it will continue to fluctuate, driven by future demand from emerging technologies.
From Lithium to Batteries
Once lithium is extracted, it must undergo several stages of refinement and processing before it is ready to be used in batteries. The lithium extracted from brines or hard rock is typically converted into lithium carbonate or lithium hydroxide through chemical reactions. These compounds are then used to produce the cathode material in lithium-ion batteries.
Lithium-Ion Battery Chemistries Driving Transition
Nowadays, batteries are made using a variety of lithium-ion chemistries. Energy density, cost, stability, and the battery's particular use all influence the chemistry selection. Some of the most widely utilized lithium-ion chemistries in large batteries and electric cars are as follows:
1. Lithium Iron Phosphate (LFP): LFP Batteries are commonly used in electric buses, trucks, and stationary energy storage systems. It has a lower energy density compared to other chemistries but offers excellent cycle life and thermal stability.
2. Lithium Nickel Manganese Cobalt (NMC): An NMC battery cell, or Nickel Manganese Cobalt Oxide cell, is a type of lithium-ion battery that uses a cathode made from a combination of nickel, manganese, and cobalt. NMC is popular in electric vehicles due to its high energy density and balance between cost, safety, and performance.
3. Lithium Nickel Cobalt Aluminium Oxide (NCA): Lithium Nickel-Cobalt-Aluminium Oxide (NCA) is used as the cathode material in lithium-ion secondary batteries, primarily for electric vehicles. The high nickel content in NCA batteries enables a greater energy capacity, which in turn allows for longer driving ranges on a single charge. This enhanced capacity is a key factor in improving the overall performance of electric automobiles.
4. Lithium Titanate (LTO): LTO batteries are known for their fast-charging capabilities, long lifespan, and high-power output, but they have a lower energy density compared to other lithium-ion chemistries.